Investment Rating - The investment rating for the company is not explicitly stated in the provided content, but the report suggests a positive outlook for participation in the upcoming IPO, indicating a favorable investment sentiment [20]. Core Viewpoints - The company, Taikaiying, is recognized as a "small giant" in the tire industry, specializing in engineering radial tires and all-steel truck tires, with a strong focus on the mining and construction tire market [4][20]. - The company has achieved significant market recognition, ranking third among Chinese brands and eighth globally in engineering radial tires as of 2023 [7]. - The revenue performance is stable, with projected revenue of 2.295 billion yuan for 2024, reflecting a compound annual growth rate (CAGR) of 12.82% over the past three years [8]. - The company plans to utilize the funds raised from the IPO for product upgrades, the establishment of a research and development center, and the enhancement of a specialized tire intelligent management system [10]. Summary by Sections 1. Company Overview - Taikaiying was established in 2007 and is headquartered in Qingdao, Shandong, focusing on the design, research and development, sales, and service of mining and construction tires [4][7]. - The company has established a strong brand presence and has been recognized by international clients, including major industry players [7]. 2. Financial Performance - The projected revenue for 2024 is 2.295 billion yuan, with a net profit of approximately 156.65 million yuan, indicating a CAGR of 20.25% over the past three years [8]. - The gross margin for 2024 is expected to be 18.79%, while the net margin is projected at 6.82% [8]. 3. IPO Details - The IPO will involve a direct pricing method with an issue price of 7.50 yuan per share, raising approximately 3.32 billion yuan [11]. - The initial issuance will consist of 44.25 million shares, representing 20% of the total post-issue share capital, with a low expected free float of 18% [12]. 4. Industry Context - The Chinese tire industry is experiencing growth, with a decline in global market concentration, and is a major production hub for tires [13][14]. - The demand for tires is expected to increase due to rising vehicle ownership and the expansion of the replacement market, particularly in the context of new infrastructure and energy initiatives [14]. 5. Competitive Advantages - The company has a strong technical innovation advantage, having developed over 700 types of tires suitable for various operational environments [15]. - It employs a localized service model to meet customer needs effectively, covering the entire sales process from market research to product claims [15]. 6. Purchase Analysis - The report recommends active participation in the IPO, highlighting the company's low initial valuation and limited historical trading records, which may present a favorable investment opportunity [20].